Every year, roughly four million Americans turn 65, and that group gets most of the attention in financial planning. According to the research behind a white paper from Equitable called PEAK 35, about the same number of Americans turn 35 each year. This group is standing at a crossroads that deserves just as much planning. They are building careers, buying homes, raising children, and paying off loans, and many of them are also preparing to receive wealth from older family members. Building and inheriting at the same time is a unique planning challenge, and it is what this article is about.

Millennials, born between 1981 and 1996, are now roughly 30 to 45 years old. Whether you are one of them, or you are a parent or grandparent hoping to help one, here is what the research shows and what is worth doing about it.

Not the "lost generation" after all

For years, the headline about Millennials was that they would end up with far less wealth than the generations before them. Student loans, an unlucky start in the job market during the 2008 financial crisis, and a difficult housing market all fed that story. The more recent data tells a more nuanced one.

Federal Reserve figures cited in the white paper show total Millennial net worth growing from about $3.9 trillion in the third quarter of 2019 to nearly $16 trillion in the third quarter of 2024. Much of that growth came from rising home values, though retirement accounts and cash also contributed.

Two caveats matter if you are part of that group. First, wealth that sits in a home is real, but it is not easy to spend, so a big net worth number does not always mean a comfortable cash flow. Second, averages hide a wide gap. The research the paper draws on indicates that the typical Millennial at age 35 has accumulated about 30 percent less than Baby Boomers had at the same age, while the top 10 percent of Millennials have accumulated about 20 percent more than the top 10 percent of Boomers did. The Millennial story is really two stories, and which one you are living has more to do with your income, debt, housing, and family situation than with your birth year.

Balancing debt, saving, and investing all at once

Many Millennials entered the workforce around the financial crisis and are still carrying student loans or credit card balances while trying to invest. The question is rarely "pay off debt or invest." It is usually "in what order, and how much of each." There is no single right answer, because it depends on your interest rates, your income, and your goals, but here is a common order of operations worth discussing with a professional:

  • Capture the full employer match. If your employer matches retirement contributions, that is an immediate return that is hard to beat anywhere else.
  • Build an emergency cushion. Having cash set aside keeps an unexpected expense from turning into new high-interest debt.
  • Pay down high-interest debt aggressively. Paying off a balance that charges a high rate is the equivalent of earning that rate on your money, with no market risk.
  • Weigh lower-interest debt against investing. Student loans or a mortgage at modest rates often make sense to pay on schedule while you invest alongside, rather than rushing to eliminate them.
  • Use tax-advantaged accounts deliberately. Workplace plans and IRAs each have their own rules and limits. Our breakdown of 2026 IRA contribution limits covers the numbers for this year.

The point is that this is a plan to build once and revisit, not a decision to agonize over every month.

Job changes and the retirement accounts left behind

The white paper cites an estimate that Millennials may change jobs 12 to 15 times over their working lives. Every one of those changes leaves a decision about the retirement account at the old employer, and the survey results on how people handle it are worth a close look. When changing jobs, 25 percent of Millennials surveyed rolled their balance into a new employer's plan, 27 percent rolled it into an IRA, 31 percent left it where it was, and 16 percent withdrew the money and spent it.

That last group is the one most at risk. Cashing out a retirement account before age 59 and a half generally triggers income tax plus an additional 10 percent early withdrawal tax, and it permanently removes years of potential growth. Leaving an account behind is not necessarily a mistake, but accounts left at old employers are easy to forget and easy to lose track of. Here are the usual options when you leave a job:

  • Leave it in the old plan, if the plan allows it
  • Roll it into your new employer's plan, if that plan accepts rollovers
  • Roll it into an IRA
  • Cash it out, which is rarely the best choice

When you compare, look at fees, the investment choices available, how easy the account is to manage, and any special features such as loan options or creditor protection. A direct rollover, where the money moves straight from one account to the other, generally avoids taxes and penalties, which is why it is worth getting the process right before any money moves.

When family helps with the down payment

Data from the National Association of Realtors cited in the paper finds that about 33 percent of Millennial buyers nationwide rely on family assistance to afford a down payment. That makes gifting a very common, very practical form of wealth transfer, and it works best when it is planned instead of improvised.

A few points worth knowing:

  • Gift tax rules have an annual exclusion. In 2025, the exclusion was $19,000 per giver for each recipient, and it is adjusted periodically, so confirm the current figure with a tax professional. Gifts above it generally require filing a gift tax return, though that usually does not mean tax is actually owed.
  • Lenders want documentation. Mortgage lenders typically ask for a gift letter confirming the money is a gift and not a loan, along with a paper trail showing where the funds came from.
  • Everyone should know their role. The giver, the recipient, and the professionals involved should all be clear on what is expected before money moves.
  • Givers should protect their own plan. Helping a child buy a home is a wonderful thing to do, and it should not come at the expense of the giver's own retirement security.

Inheriting property: the part people underestimate

The research found that 46 percent of Millennials expect to inherit some type of property, but only 38 percent feel prepared to manage that transaction. The gap makes sense. A house is rarely just an asset. It carries memories, it may be shared among siblings, and it comes with ongoing costs like taxes, maintenance, and insurance that someone has to pay while decisions are made.

Questions to think through before it happens:

  • Will one family member keep the property, will it be rented, or will it be sold?
  • If there are several heirs, how will ownership and costs be shared, and how would someone be bought out?
  • Is there enough cash in the estate to cover carrying costs while decisions are made?
  • What are the tax consequences? Inherited property such as a home or stocks often receives a step-up in cost basis, which can reduce capital gains tax if it is later sold. Retirement accounts do not work that way. Withdrawals from inherited retirement accounts are generally taxed as income, and most non-spouse beneficiaries must empty an inherited account within 10 years.

Rules vary by situation, so these are exactly the questions to take to a tax professional and an estate attorney before you are in the middle of it.

The Great Wealth Transfer, in perspective

You have probably heard the phrase "Great Wealth Transfer," the expected movement of assets from Baby Boomers to younger generations. The estimates are enormous and vary widely. The white paper cites a range of $30 trillion to $140 trillion, another estimate it references puts total transfers around $124 trillion through 2048, and as much as $46 trillion of that by 2048 is expected to reach Millennial heirs. A range that wide is a signal in itself. Nobody knows the real number, because it depends on how long people live, what healthcare costs them, how markets perform, and how much they choose to spend or give away.

Here is what the survey of Millennials found. About 41 percent expect to receive an inheritance or already have, and another 26 percent say they are fairly certain they will, which means roughly two-thirds of the generation anticipates a significant wealth event. Among those expecting to inherit, the assets they anticipate are mixed: cash (71 percent), personal valuables (51 percent), real estate (46 percent), stocks, bonds, and other non-retirement investments (41 percent), retirement accounts (41 percent), and a family business (24 percent). Each of those comes with different rules, which is why an inheritance is rarely as simple as a check arriving.

A related point is that much of this wealth is expected to pass first to surviving spouses, often women, and then on to the next generation in phases, through direct inheritance, gifts during life, and estate planning. Transfers happen in stages, not all at once.

The most important planning principle here is also the simplest: do not build your plan on an inheritance that has not arrived. Parents may need their savings for their own healthcare and longevity, and they may have priorities you do not know about. Build a plan that works without the inheritance, then decide how any money that does arrive would fit, whether that means accelerating goals, strengthening your own retirement, or helping the next generation.

The conversation most families are not having

About six in ten Millennials report having had no conversation, or only a limited one, with their families about wealth transfer, while about 41 percent have had detailed conversations. Families in that second group tend to know who is responsible for what when the time comes. For everyone else, silence is the default, and the cost of silence tends to show up at the worst possible moment.

If you are an adult child, a gentle opening is often the best one: ask what your parents would want you to know if something happened, rather than what you will inherit. If you are a parent or grandparent, you can start with the practical items and let the rest follow. A good first conversation can cover:

  • Where important documents are kept, and who has access to them
  • Who is named as executor, trustee, and agent under powers of attorney
  • Whether beneficiary designations on retirement accounts and insurance are current
  • What the family wants to happen with a home, a business, or items with sentimental value
  • Health care wishes and who would speak for you if you could not
  • Whether to meet together with an advisor and an estate attorney, so everyone hears the same information

Women, wealth, and confidence

One finding in the research deserves its own mention. According to a survey cited in the white paper, 51 percent of Millennial women report being the primary breadwinner in their families, compared with 39 percent of Gen X women and 37 percent of Baby Boomer women. At the same time, the research found a confidence gap: 85 percent of Millennial men feel confident making smart financial decisions today, compared with 71 percent of Millennial women. Among women who work with a financial advisor, that confidence figure rises to 84 percent.

Those are survey results, so they show a relationship, not proof that an advisor caused the difference. But the pattern is a familiar one: the gap is about confidence, not ability, and a clear written plan tends to close much of it. If you own a business, our article on the retirement confidence gap facing women business owners looks at a similar dynamic.

Why people still want a human in the loop

Millennials are the first generation to grow up with digital financial tools, yet the research found that about 68 percent would prioritize working with a human advisor over a solely digital experience. Specifically, 27 percent prefer an advisor over digital tools, and 41 percent want a hybrid of both. The reason shows up in another finding: 78 percent of Millennials feel confident making smart financial decisions today, but that drops to 27 percent if their finances became more complex than they are now. Inheritance, property, a business, and children can all make things more complex quickly.

The survey also found that Millennials working with an advisor were more likely to feel confident about their financial decisions (88 percent) than those without one (69 percent). Again, that is correlation, not proof of cause. And because the underlying study was conducted by a financial services company, it is best read as one data point among many rather than the final word.

What people say they want from an advisor is revealing. Ninety-three percent say it is at least somewhat important that their advisor aligns with their values and goals. About 40 percent say they would replace an advisor who was not transparent and candid. About 74 percent say they want an advisor who specializes in inheritance and wealth transfer. If you are evaluating advisors, those are useful questions to ask. How are you paid? How do you handle the family side of planning? How do you combine technology with real conversations?

One more finding worth a note: 36 percent of Millennial investors in the U.S. report owning cryptocurrency, compared with 24 percent of Gen X and 8 percent of Baby Boomers. Whatever you hold, the principle is the same. Alternative assets belong inside your overall plan, sized for your risk tolerance, not outside it.

A checklist for the Millennial in your life, or for you

If you are building wealth and might inherit

  • Write down your priorities for debt, emergency savings, and investing so they are sequenced instead of competing.
  • Capture any employer match, and keep a list of every retirement account you have ever had, including those at old employers.
  • Before cashing out any retirement account at a job change, compare your rollover options with a professional.
  • Build your plan so it works without an inheritance, then model what you would do if one arrived.
  • Put your own estate basics in place: a will, current beneficiary designations, powers of attorney, a health care directive, and guardianship nominations if you have children.
  • Review life and disability insurance if anyone depends on your income.
  • Start the conversation with your parents or grandparents, even if it is just one question.

If you are a parent or grandparent planning to pass wealth on

  • Create a one-page map of your accounts, documents, and key contacts.
  • Check that beneficiary designations match your current wishes.
  • Decide, with your tax advisor, whether to give during your lifetime, at death, or both, and document any gifts.
  • Think through how a home, a business, or another hard-to-divide asset would be handled, and make sure there is enough cash to avoid a forced sale.
  • Talk with your children while you can answer their questions yourself.
  • Meet with an advisor and an estate attorney together so the whole family hears the same plan.

The Great Wealth Transfer gets a lot of headlines, but the families who come out of it well are rarely the ones who simply received the most. They are the ones who planned, talked, and prepared before the moment arrived. If you would like help building that plan, or starting the conversation with the people in your family, a complimentary planning review is a good first step.

Sources and notes: This article draws on Equitable's PEAK 35 white paper, which cites data from the Federal Reserve Bank of St. Louis, the National Association of Realtors, the U.S. Census Bureau, and several surveys. Survey results reflect the views of respondents and are not guarantees of future outcomes. Essential Trust Financial is not affiliated with Equitable. This article is for general education and is not tax, legal, or investment advice.